Market News

Hog futures contracts close higher

The main item of business in cattle country on Monday was the distribution of the new showlists. Ready cattle numbers are steady to somewhat smaller than last week with Kansas and Colorado showing the biggest decline. Although asking prices are not well defined a few showlists have been priced around 128.00 in the South and 205.00 to 207.00 in the North. Significant trade volume is not expected to develop until the second half of the week. The kill totaled 128,000 head, 1,000 more than last week, but even with last year.

Boxed beef cutout values were steady on the choice and higher on select on moderate demand and offerings. Choice beef was down .15 at 194.09, but select was up 1.27 at 184.76.

Chicago Mercantile Exchange live cattle contracts settled 20 points higher to 25 lower. The market was focused on the outside markets, the gains in corn futures and future beef demand. Consumers generally spend less on beef in January and opt for less expensive meat at the grocery store as they face higher utility costs and holiday bills. February settled .25 lower at 130.35, and April was up .20 at 134.75.

Feeder cattle ended the session 40 higher to 42 lower in a sluggish trade, the market was pressured by higher corn values. January was .42 lower at 148.45, and the March was down .02 at 151.42.

Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 8100 head. Compared to last week’s sale feeder steers and heifers were not well tested in the early rounds, a few sales were 2.00 to 5.00 lower. Steer and heifer calves opened steady in a light test. Early demand was moderate to good. 550 to 600 lb. steer calves traded from 159.00 to 163.00. 700 to 800 lb. yearling steers traded from 144.00 to 149.00. 525 to 600 lb. heifer calves brought 144.50 to 147.00. 

Lean hogs settled unchanged to 102 points higher as moderate buyer interest redeveloped through the lean hog market as traders focused on the potential stability of both commercial and investment buyers after the crop report last week. Pork demand is expected to improve as consumers turn to pork as beef and poultry prices climb. February settled 1.02 higher at 85.22, and April was up .72 at 87.85.

 There was slow market activity with light demand in the hogs on Monday. Barrows and gilts in the Iowa/Minnesota direct trade closed 1.69 higher at 84.13 on a carcass basis, the West was up 1.39 at 83.69, and the East was down .59 at 79.14. Missouri direct base carcass meat price was 1.00 higher from 75.00 to 77.00. Terminal hogs on a live basis closed .50 higher to 1.00 lower from 52.00 to 56.00.

Pork trading was very slow, with very light demand and light to moderate offerings. Pork carcass cutout value was down .48 at 93.42.

The projections for 2013 pork exports was raised slightly, op 0.7% from, the previous month’s estimate due to increased availability on the larger production forecast.

Monday’s hog kill was estimated at 431,000 head, 1,000 less than last week and up 62,000 from last year.